Final answer:
Wellington Industries is contemplating a decision related to its capital structure, which consists of choosing the appropriate blend of debt and equity financing for the company's needs.
Step-by-step explanation:
The managerial decision regarding Wellington Industries' consideration of issuing new debt to buy back shares of its common stock refers to choices around the company's capital structure. This aspect of financial management involves deciding the best mix of debt and equity to finance the company's operations and growth. Issuing new debt to repurchase equity affects the firm's leverage, risk, and overall financial strategy, as debt requires the firm to commit to scheduled interest payments regardless of income, while equity dilutes ownership but does not require fixed payments.